Capital Southwest offers an 11% yield and pays monthly dividends, making it attractive for income investors. CSWC's internally managed structure results in low operating expenses, strong alignment with shareholders and has nearly 90% of its portfolio in safer first-lien debt. Recent results show improved credit quality, robust NII coverage of dividends, and growth opportunities from a new SBIC ...
DALLAS, Sept. 09, 2025 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (NASDAQ: CSWC) (the “Company”, “Capital Southwest”, “we”, “us” and “our”) is pleased to announce that it has priced an underwritten public offering of $350 million in aggregate principal amount of 5.950% notes due 2030 (the “Notes”). The Notes will bear interest at a rate of 5.950% per year, payable semi-annually, will mat...
We continue our discussion on debt, this time focusing on corporate borrowing. CLOs and BDCs are two pillars of the credit markets, powering the U.S. economy. Securities from these asset classes tend to be volatile due to interest rates and credit health, but have safer preferreds/baby bonds.
Lower base rates are headwinds for most BDCs, but Fidus Investment and Capital Southwest stand out as likely to avoid dividend cuts. FDUS impresses with a low-leverage balance sheet, strong liquidity, robust base dividend coverage, and significant equity stakes that provide income flexibility. CSWC benefits from improved credit quality, strong equity investment gains, high undistributed taxable...
DALLAS, Aug. 27, 2025 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (“Capital Southwest” or the “Company”) (Nasdaq: CSWC), an internally managed business development company focused on providing flexible financing solutions to support the acquisition and growth of middle market businesses, is pleased to announce that its Board of Directors has declared monthly regular dividends of $0.1934 p...
Capital Southwest (CSWC) stands out among BDCs for its strong earnings, robust liquidity, and impressive credit quality, even amid macro uncertainty. Management's ability to harvest equity gains and maintain low leverage positions CSWC to weather economic headwinds and sustain its dividend. The recent switch to a monthly dividend and improved non-accruals further enhance CSWC's appeal for long-...
The BDC sector faces mounting risks from a weakening economy, high consumer debt, and the potential for further dividend cuts as interest rates decline. Recent dividend cuts by several BDCs highlight the sector's vulnerability, despite some names maintaining resilience and attractive valuations. Spillover income offers only limited protection; tight dividend coverage and rising non-accruals sig...
Q2 earnings confirmed my call for a market rotation in BDCs; quality bias and selectivity remain critical for outperformance. Structural headwinds—spread compression, falling base rates, and thin dividend coverage—signal elevated risk of further dividend cuts across the sector. Current sector repricing is insufficient for broad new BDC allocations; most remain unattractive except for select nam...
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